27 Oct 2025 | 5 Mins Read
Motilal Oswal sets Rs 260 target for Federal Bank
Flipitmoney
Motilal Oswal's report on Federal Bank notes a proposed ~INR62b preferential capital infusion from Blackstone, boosting the bank's balance sheet flexibility and supporting its journey toward higher RoA. Estimated loan CAGR is 17% with a shift to better-yielding assets, while RoA is expected to improve to 1.2%/1.4% by FY27/28E, potentially reaching 1.5%. A BUY recommendation is maintained.